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tv   Street Signs  CNBC  December 22, 2009 2:00pm-3:00pm EST

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no doubt you remember the news the other day when accenture dumped tiger woods in the middle of his sex and text
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scandal. tag hoyer is sticking with tiger big time. tag put up photos of tiger on multiple websites. a big, bold move. look at that, you have to wonder whether that watches a best-seller. that headline tag heuer stands with tiger woods appears on a website when marketers are turning tail and running on him. it's an interesting risk. i think the watchmaker's betting that its customers are mostly men and, therefore, men may sympathize for tiger's troubles, perhaps. >> but they also said last week, didn't they, they were going to downplay or back away from tiger in the american campaigns. i wonder whether this is reflect of the fact that's a european company and european companies may have a different attitude. >> because europeans have a different attitude about those issues. >> christmas gift that's just been made available, new product, a geithner tax service
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t-shirt, we don't pay but you will. ala geithner. available on the internet. brought to our attention as a new product out there. >> that's it for "power lunch." thank you, everybody, for joining us. >> "street signs" with simon hobbs begins right now. >> see you. it's 2:00 on wall street where the stock rally continues. a lot of data to digest. volume of home sales at a three-year high. downward revision to gdp. we assess what exactly today's "street signs" point to for the new year. a tough week for airline passenger but was airline stocks have been on the tear. flying under the radar perhaps but the index is up 106% over the last 6 months. is this a ba romter for the rest of the market. 11:00 a.m. in southern california where the holiday rush is also on. will late shopper prove enough across america to help retails are dig out from the weekend storm? hello, welcome to "street
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signs." i'm simon hobbs in for erin burnett. let's get right to the trading action in a moment. brian schactman on how the nasdaq is clocking up fresh highs for the year. first, bob pisani. >> reporter: 3-2 advancing to declining stocks. we had decent numbers on the november existing home sales. airlines have had another good day. one point the airlines were all up 3%, 4% and the transportation different index was down. importantly we're hitting new intraday highs for the year on the nasdaq and s&p 500. 1120 was our key number alt one point. we were over that around 10:00 eastern time but moving sideways since then. good enough for government work, folks. we have broken out of the range we've ben in for the last month, 1114, 1115. if we close here, an important break-out towards the end of the year. 2009 a very strange year. up 23% on the s&p 500.
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is that good or bad? it's great. the best year since 2003. but look at all 0 the strange statistics. we have had outflows from u.s. stock funds this year the single-most important statistic. average retail investor has not put any money into the market. record new offings in the form of secondaries that occurred in the second half of the year as banks and others reflen mennish or rebalance balance sheets. record low insider buying and buybacks. this is one of the -- these are strange stats. you think you need lower offering, higher amount of buyback dozen move the market forward but we haven't had to do that. a strange year. s&p versus the nasdaq. the big performer on the year remain tech stocks. this happened early on. there's a top line of the s&p 500. bottom line -- excuse me top
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line of the nasdaq. bottom line s&p 500. from march lows on it's all technology stocks outperforming overall market. technology stocks that's where we find brian schactman. >> we're close to highs of the session up half a percent. talk about so mump the five-year chart of microsoft and how 30 have been resistance. it's getting tested today in the sense it touched a new high right near 31 a share. up 0.9. a court ruling against them for patent of $290 million fund, it's hazy what happens to word, sales moving forward in the new year. we'll try get you more clarity on that later. but despite that court ruling it's still up. comscore says year-over-year last weekend online sales up 13%, whether storm related or growth in change in the sentiment of the economy, that's for you to decide. am na amazon up 0.9.
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a quick check on handsetmakers. apple up 0.8. thaers n they're not just a handsetmaker. the next generation of what apple does is fascinating. research in motion added to least preferred list. palm down 3. 1. retail, kind of a mixed bag, bed, bath, beyond initiated outperforming. lululemon up 3.2. back to you. >> thank you, brian. we'll talk to jim cramer about the fact google crossed $600 for the first time since 2008. existing home sales surging to highest volume of sales in two years. diana olick will break down the numbers. what's the takeaway in'ance? >> numbers go up for existing home sale but was it may be the last surge for a bit thanks to the first year home buying tax
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credit. >> i think it's going to cause volatility. what we have seen as a large surge in home sales. up 44% on year-over-year basis. a sharp upturn. tax credit has been extended through april for signed contracts, through june foreclosed contracts. over the next few months you probably will see decline in home sales. >> specially possibly in the west which was driving the numbers in november. that's where you are seeing a lot of investors buying up distressed properties. foreclosure sales one-third of the market. there may be double counting in certain hot spots because investors are buying and quickly flipping them. prices down overall, 4.3% in november, that's year-over-year, that's the smallest price drop in two years thanks to low inventory prices are stabilizing but foreclosures rising. >> distressed sales are one-third of the market today. i anticipate it will remain
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one-third of the market in 2010. so we are looking at comparable apple to apple compare ons and begin the invent to being drawn down nicely, i do anticipate the prices overall will begin to stabilize. >> banks are holding on to a lot of foreclosed properties perhaps waiting the market out to get the best prices. go to >> thank you for that. housing was a big part of growth in the third quarter gdp figures that we got. here for a broader look of what was delivered today what it means for next year, steve liesman. >> it was a disappointing revision to third quarter gdp. sparking a debate about whether the recovery is less robust than some thought or the third quarter weakness ends unbeing fourth quarter strength. up 2.2%. looking for a modest revision. estimated at 2.8%. looking for it to be revised down 2.7. unusual to a big revision in the final of the three reads on gdp.
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good turnaround from the second quarter. the takeaway from this here, all of the red arrows, all of these revised down from the prior reading, consumer spending, business inventories, all of them, even positive, revised down, even the government spent less than first estimated. why they can't get the government estimation on spending right the first time, i don't know. where we are gdp after the four straight quarters of declines. solid quart up 2.2%. you need to get to 2.5% about absorb the slack in the economy and create jobs. what we did, we looked at estimate of four different economists and kafrj averaged them together. the pop in the third quarter of '09 above 3%. stay at 3% level for most of the fourth quarter of 2010. one of key is is less inventory
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liquidation but 4 has concern. >> we're not building inventories. we don't expect invent to to build until 2011. i hard concern, we're not building inventories. we're getting a positive contribution from slower rate of decline. a longer ways to go before we build inventories. >> upsides and downsides. business investment and lending rebound would be upsides to 2010 outlook where the downsides more bank, worries about foreclosures that would come through from the surge at unemployment this year and the surge in commercial relation estate losses. the biggest unknowns when jobs turn around what is the strength and that the consumer. interest rates, smelling a stronger than expected recovery and government spending the ending of stimulus from the fed. treasury a powerful impact on 2010. what we don't know is whether or not there are offsets to the two factors. >> stay with us here if you would, steve. optimists now, david weiss,
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chief economist for standard and poor poorers. david, why are you optimistic? >> well, it's funny because actually in the polls i'm down near the bottom. i think that this is a sustained expang that we're going to see continued growth through next year. a half speed recovery but it's a recovery. >> why do you say half speed recovery? >> in the first fourth quarters after a recession the economy grows 5%. this time we think it will be like 2. 5%. up is better than down but it's not as good as normal. >> jack, what's your view? >> i'm about 2.5% myself and you know here we are, he's -- david's saying he's optimistic. i'm skeptical. my point here is that at 3% we can grow 170,000 jobs a month. at 2 to 2.5% only grow 100,000, 120,000 job a month which means given we have lost 7.5 million
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jobs in the last downturn it's going to take five or six years to get jobs back in the range and that has nothing to do with new entrants into the workforce. steve, correct me if i'm wrong we need at least 100,000 jobs to keep the unemployment rate from going up. right. that would be what you expect if all of the people who are entering the workforce say they're looking for work. but look what i made the chart of what economists know about the future what's interesting to me is the known unknowns are pretty much out there. the idea that we could have for foreclosures next year and the withdrawal of stimulus from the federal reserve, and the treasury, these are banked on. i'm wondering about the potential upside here. david and jack what if we have a rebound in bank lending? strikes me that is nobody's forecast right here. >> david, first. >> i think we will get a rebound in bank lending. most of the big companies are trying to lock in long term money they don't want short-term
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loans. i didn't think you'll get short term lending by bank but was we hope a revival of the small business. that's how you get jobs going in the economy. >> jack? >> i mean, that's a big if. i think that we've got velocity of money essentially collapsed as recently as 2006, we lent $1 going into the banking system four times. that number now is 1.3 times. and the trend seems to be lower. so i'm not pinning my hopes that we're going to see some ramp-up in lending begin the fact that one top line growth is not go anything where and, two, i'm not sure the demand for borrow, among able bodied borrowers, is increasing that much anyway. >> what one figure that jumps off the page to me, guys, is $820 billion of cash on the s&p industrials books right now. when you look at their cash percentage long-term debt, 57%,
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there is tremendous scope for borrowing. but whether or not there's any desire is an entirely different question. whether or not the future investment happens, happens out of their own books. >> let me butt in here, then. i sometimes fee as if we're dancing on the head of a pin here. trying to determine what's going to happen next year. the s&p's recouped half of its loss, where we are about now up from that 17-month bear market. we focus on the fact that people feel borer as a result. you know there's a huge wealth effect. people have to get out, life goes on, kids have to be fed, you know, there are a lot of people go into the new year, it's not in figures that we see now, they will make decisions how they're going to conduct lives and whether they're going to be wealth generators and surely that is the unknown. that is easily it may not happen but could easily be a major factor coming into the first quarter. you know, at moment talking about government support to hold the whole thing together. now it's up to the individual
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surely, mr. emblem. >> chairman greenspan talking about among the similar idea here that it is a self-fulfil self-fulfilling prophecprophecy >> i'm going to say that the markets in 2010 are somewhat of a mirror image of the markets of 2009. we have a fair amount of momentum going into the early part of the year. some of our stimulus that we have enjoyed from the second quarter on will start winding down. we're going to start feeling effects of that in the third quarter. we're going to see probably, you know, we could have as much as 15% move in stocks from here. but that's going to take us from full val washington likely expense everybody valuation. once we see the slack in the system as stimulus wears off, that could bring stocks down in the latter half of the year. >> we have to leave it there. thank you all. up next on "street signs,"
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the airline indicator, gains in the airline sector almost twice the run-up we've had in the s&p. is this a leading indicate that less turbulent times are ahead or the economy and the major indices. how to get your hands on stock before a business goes public. be the foirs trairst to trade s facebook and twitters of tomorrow.
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highway travel if the united states fell for the first time in five months in object. the department of transportation says highway travel fell by 1. 5% a year ago a drp of 1.5 billion miles driven. while fewer people have been drive, more are taking to the air, airline stocks like continental, delta, us airways up over 100% and the airline index nearly doubled the s&p so far in 2009 but even as traffic demand has been improving, issues like classty and winter storms. thank you for joining us. have you bun bull, through? do you continue to be bullish? >> yes i have been bull, through the whole situation. and continue to be quite bullish.
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we're a long ways from where these will be when demand is back to normal. >> why do you say that? talk me through the argument. >> okay. if you go back and look at sfrm way to think about it, go back and look at last time what i consider not peak demand but normal demand. take a look at 2006, it thou 7, before oil headed to for $147. if you look at market caps of the airlines at that point compare to where we are today, you know if we just get back to where the kinds of margins that we had a couple years ago and look at cash flow these things will throw off at that point, you know, i think we're looking at a double or a triple for most of the old style airlines. >> come back for the picks in a minute. there seems to be a lot of ifs in what you're saying there. aren't we basically saying this is an industry outside asia is mature, riddled with overcapacity, and really at the behest of what the oil price
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does. >> partly right there. it's a mature industry. and in the case of the u.s., not necessarily riddled with overcapacity. one of the things that's happened over the last several years the airlines figured out the way to survive and prosper is to ground airplanes. us airways grounded 20% of the fleet and instantly margins became the best in the industry and that kind of showed everybody what to do. and since that time we've gone through a substantial number of cutbacks some of them cutbacks because oil is high, we've got do something. some because demand is down. we have to do something. but the point of it is, xa capacity's down. >> let me ask the degree to which these will be solid cycles, if you like. we showed aographic showing the airlines index when outperforms major indexes in 5 out of the 6 times that's happened recently, it does mean that you get positive returns for those major
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innen did sis in the year afterwards. i'm asking whether this is a leading indicator for the rest of the economy or buffetted by the factors like swine flu, double dip recession or a spike in oil prices. >> things like swine flu and oil prices will have an impact but it's generally has been seen that airline shares move early when people start to sense that the world is about to get fixed if you will, from an economy point of view, airline shares ten to move early. whether or not that's in effect going to actually drag the economy forward, i'm not sure about that. but the airline shares have generally moved earl. >> i pick me through this potential mine field. i think u al triple since july 1st, for example. >> there's two things to think. one is these kinds of shares are not investments.
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they tend to be shares that you want to buy when nobody wants them. and you -- when things look really good it's time to step aside. we need to have people understand that. in terms of why a u.s. air or united have moved as much as they have, it's really a fact that -- a factor of the history here over last several months where everybody was concerned they were going into bankruptcy they weren't going to make it through the summer. with that the stocks got beat up for more than others, they came up off a lower bottom. >> any that i could short at this stage? >> i wouldn't short noifr these. there are little things. they'll move as a group. >> nice to talk to you, bob. just ahead on "street signs" -- the eliot spitzer interview, is wall street's disgraced enemy ready for a comeback? a look at facebook and twit somewhere wonder, can i known oxygen a piece of it.
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reach the widest possible audience for their shares. >> reporter: names like facebook, twitter, zynga, solarcity and hot ones, former slide employee, he used the service to finance his wedding proceeds from company stock not yet public. >> i was thinking and planning to propose and to get engaged to my girlfriend, who is now my fiancee and thinking to the ring and the wedding and the honeymoon and i thought it would be nice to have liquidity quickly, sharespost was the best and easiest way to do that. >> reporter: second market says the second market growth in private equity has been stunning. $25 million worth of transactions during the summer over $125 million since, 7,000 accredit the investors are doing
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business in serven different asset classes there. lawrence butler recognizes invest of investing in preipo companies but pulled together $1 million in what he calls blue chip companies ready to go public. >> we think it's a fantastic investment opportunity es spligs if the ipo market heats up next year, which i expect it to. >> and as long as shares in the companies are vested most companies we've talked to involved with all of this don't have any problem at all with any of it. >> as you point out corporate governances a key issue. something quoted in public you know you've got extra vigilance that cops with that. you don't get that in these instances. >> true. i mean, investors are absolutely taking a risk. companies are on the path of going public. and they might not ever go public. they could chochoibe acquired a song. you can to know where your money
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is going who has invested and what kind of mark to create. the websites here offer brokerage help, also offer analysis, independent as well. s.e.c. hasn't commented about this but everybody says it's legal but this is a classic case especially after living through the bubble years of buyer beware. >> thanks for the heads-up. jim goldman from los angeles. the crusader against wall street. now two years after the scandal that disgraced him, eliot spitzer sat down to talk about what's next. is he ready to get back into the game? cnbc senior correspondent scott cohn is here. >> the question of whether the game will have him back. we'll get to that. love him or hate him a lot of wall street learned to hate him, eliot spitzer shook up the street from analysts to insurance companies to the stock exchange before going down in flames in the prostitution scandal. today, he works in the family real estate business, far from the political epicenter he once
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occupied amid growing speculation he won't address yet he's planning another run for office. what is clear to spitzer more than anyone, he is out of the game at a time when he would so love to be in it. >> both on the business side and the regulatory side, there is a massive failure. >> reporter: how much does it gnaw at you now not to be in the game trying to fix this? >> it gnaws anybody who isn't there trying to participate. obviously we have a problem that need to be remedied. we need to rebuild a regulatory structure. interestingly by that i care much less about how we move the chairs around on the deck of the titanic than we put the right people in the chairs to do their jobs. >> i don't want to get into the personal issues that you had except to this extent people looked that the as an excuse to throw out everything that eliot spitzer did. >> right. >> that you know this guy was flawed and so everything that he did was flawed. how -- you've heard that before. >> right.
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>> what do you think about that? >> there have been people who wanted to reject everything we did from the get-go. the thing wise did in the context of low wage workers, environment, civil rights in my view, are at least if not more important than what we did in the capital markets. an enormous expanse of we did trying to say here's how the government should function to protect the public interest. capital markets there have always been deniers. those who want to continue to live in a world not only they're entitled to do a coherent intellectual argument, i feel they're wrong. >> reporter: you feel you handed them an excuse. >> none of this relates to me. i'm not so important in this. i'm unemploy important. what matter is the lessons about how mark markets function. >> with the benefit of hindsight spitzer makes no apologies for anything he did as the sheriff
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of qualify street. those who criticized strong arm settlement as attorney general, those say aig was a good company. the whole interview on along with the other central figures in the war on white collar crime in the last decade. >> scott, thank you very much for that. up next, get ready to stop trading. jim cramer on his way around, ready to talk about the tech breakout. "street signs" will be back in a moment on cnbc.
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was i wrong to make my price target 700? >> boo! >> i've been soul search, ladies and gentlemen. i was wrong. i was wrong. i should have said 750. that's right. tone we're going off the charts to explain why google still has plenty of room to run. >> and that was what the man said on december 15th. today, google crossed 600. >> i see why everybody hates
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him. this is a story of a incredible strong quarter. what people don't realize, simon, really important, that is there was a lot of extra ad dollars that were available because things got better and the ad dollars didn't go to print and didn't go to radio, they did some to tv, but a huge amount went to the web. that's why i think google's going to have a giant upside surprise this quarter. it's not in the numbers. people are creeping up, goldman raised numbers a little. you need to know explosive fourth quarter and that's what's go zbong sustainable. a hole for the longer term? >> clwhen you see numbers down 20%, 30% for print it's never coming back. the easiest way to throw dollars at web to give it to google google has a fabulous ad service business that people don't talk enough. >> right. >> you can give money to dole and get direct response ads and get an immediate return.
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the brand, because of the eyeballs, this is the play. i know that people want to talk about bing and microsoft, if you want exposure for part of like if you want to reach people, there's the super bowl and after that there's google. it that is powerful. for the next generation, people trying to reach 18 to 24 bracket, those people -- they never read newspapers. they've never read newspapers. they have google. i don't think people know "the new york times" exist because there's google. >> get das tracked moving into the mobile space -- >> i think google is part of the mobile internet tsunami. people have to recognize there were ad dollars. >> okay. >> and the fourth quarter was a monster spend, monster. google got the line's share. >> talk about your trades. ameritrade. >> this is interesting. a couple days ago a lot of the brokers said business is not that great.
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keep ruett, banking research i regard as par excellence bar none is upgrading ameritrade, looking for a resurgence. this is important. taking schwab up, too. i'm betting with keith next year's a better year. you need to see the trade -- seed the balances move up and rates move up before they can make money. i thought this was a gutsy call. >> on the basis the retail investor -- >> one of the main reasons. boy, the retail investor has not been here but the businesses themselves, self-direction, i think is a very good place to be next year. >> what else have we got here? >> i think that j. bill, this is a company like arrow electronics that reported yesterday, people should recognize that broad panoply, these companies truly are the guts of tech. jabil is -- they -- they are the assembler so they have a broad array of who they deal with.
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yesterday arrow, the a distribute, that's a fabulous sign. vechet makes little components, those are for more more important if you look at microsoft and dell. people are looking for gdp to climb first quarter, not strength. tech is going to shock in first quarter which is not a great quarter seasonably. it's going to be explosionive. >> we have had a run joup. outperformance from the nasdaq in technology. >> maybe the first five days you see a sell-off in january because they have been marked up or taken up. >> right. >> this group is signaling the first quarter's going to be far stronger. these are all sassemblers. >> i'm with you. >> you'll see staples moving up, office depot a resurgeon against in spend for deck. you will see if if jabil goes up. those are the quiet manufactures
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of parts and assemblers of parts. >> we have to leave it. >> great to see you. >> cramer's going off the charts tonight this time getting i read on an online retailer, "mad money" 6:00 and 11:00 eastern on cnbc. of course the holiday rush is on but will it will be enough to offset last week's snow blizzard? jane wells is taking stock at one mall. >> reporter: people keep stopping and asking me for directs to stores. we're going to look at what the store did and new figures onion line shopping and where you might find the latest discounting after the break.
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you better watch out. you better not cry
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you better not pout ♪ ♪ i'm telling you why santa claus is coming to town♪ >> t minus 58 hours until the clock strikes midnight. plenty of shopping and extra three hours if you're standing where jane wells i in california. how it's looking, jane? >> reporter: you know what? it's pretty slow this morning here at the westfeel topanga mall. it's 11:45. i talked to a woman with the nordstrom bag who said it was the easiest she's ever got noon nordstrom's here. sales have started to ramp up. new numbers onion line sales which are small in the total number but more people are opting for online rather than standing in in line. for example the late of the numbers from comscore this holiday, people have spent more than $25 billion online up 4% from a year ago thanks to 13% jump during the storm. last week set a one-week sales
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record of nearly $5 billion online. but getting down to the wire the hope that is many will opt for the mall. sales promotions are swinging into high gear. >> you have luxury retails are being promotional. you have traditional department stores promotional such as macy's and sears who have gone out of their way and multiadvertising to draw them into the mall. 15. >> reporter: so eric says there was initial resistance by retails are to stay open until 11:00 p.m. starting a few days earlier than they do. but at this point, no resistance. they will be opened nil 11:00 through wednesday and 6:00 p.m. christmas eve and hoping that they can make up for whatever slowness they've had so far compared to last year. >> jane, stay with us. let me kwelcome to "street sign" a reporter for "the washington post," she's the retail
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reporter. thank you for joining us. can we clear up this conversation about the snow on the east coast? i've never heard such in my life, the children will not east or presents will not be bought? >> the presence will be bought however not as many will be bought. so, what we saw this weekend was a major snowstorm hit the east coast and some people in chicago think that we are wimpy for complaining about all of the snow but it was a lot for the area. what happened it hit on the worst day possible for retailers at super saturday. theed byiest day of the year. according to one analyst, that resulted in about $2 billion in lost sales. and that's manly from people who would have come and take their time, shopped a little bit, done a little bit of impulse buy, now strapped for time and shopping what's on their list. >> you could equally imagine that certain people would have to throw money problem that surfaced, they end up buying more expensive presents that happening to close. there's that question of just having to do the job basically.
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>> what's most important for retailer is time. that's why we count the number of days that they have between thanksgiving and christmas to make sure that they have the most days possible because what's most important making sure you get customers in the store as often as possible and for as long as possible. so losing a day is detrimental for retailers. >> jane, you want to dive in here? >> reporter: it's not like they had nothing to do. they could go onloin and there was a 13% surge. there were some extensions of free shipping. i don't know about you, when i get online i spend a lot more time shopping than i do walking around the stores and again, even though the storm was so bad in one particular area, the weather across much of the country was fantastic. weather trends international is saying last year on the one before christmas, there was more bad weather in a broader area. they love to blame the weather in retail, it's too cold or too warm. we'll have to see where it ends up. >> the earnings statements in
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january will show up there. let me change the subject. you're not a stock market person, you're a journalist, but from the sort of work that you're doing, what flags would you raise for investors within the retail sector at the moment, good or bad? >> i think the most important thing to look at is how much consumers are going to be spending. we have heard a lot about consumers feeling optimistic and consumers saying i'm going to open up my wallet. is that optimism going to translate into more dollars spent in? i think we'll have to wait until after christmas to find out how much they pull out of the wallets. >> individual names are accelerated plays be up or down on that basis? >> i can't name particular names but one thing that i will say is that consumer electronics as you were mentioning before in the show have been surprisingly good in terms of sales this year. it's one of the reasons why sales were strong in november, consumer electronics has seen an increase after falling for
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several months year-over-year. consumer electronics are something that's very important to watch. online retail, amazon reported seeing its best sales. kindle is something that's very hot. i think that's an important sector to watch. >> nice to see you. jane? >> reporter: i was going to say, anecdotally what i'm seeing a lot of today, a lot of nordstrom bagser just in the mall. >> i did see a piece of research nordstrom does better coming out of a recession than walmart. jane, thank you. up next on "street signs," with six more days left to trade for the year, which stocks are a good buy before the ball drops? six picks straight ahead. tdd#: 1-800-345-2550
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oil prices ended the session in positive territory today. above $74 a barrel. $74.40 was the closing price here. keep in mind, this was a thin trading session. low volume here.
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that spike you saw midday could have a lot to do with the fact that there weren't a lot of folks in the market. also, a lot of traders looking ahead to this afternoon's report to the petroleum institute, looking at decline. gasoline helping to lead the way here. we have a report from mastercard. spending polls showing week over week, gasoline demand was up nearly 3% over the week. when you look at where we've been for the last several months, we're still in that range between 65 and $75 a barrel. we're going to end at the top of the range to close out 2009. >> thank you. only six more days to trade for 2009. what should you pick? here with their suggestions, james and brent. james, the three suggestions you have, it's an interesting idea that you're pulling through
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with. those that could suffer from a short squeeze. >> i want to find the people who are losing money, so we can benefit when they take their tax losses. short sellers are going to lose money, they're going to have to cover into the end of the year to take the tax loss. >> so what are the names that your analysis has thrown up? >> basically, i looked at all the stocks that doubled, picked the three i liked the best. i like lulu lemon, they make yoga wear. as can you fell, i'm a big yoga aficionado. it would take 18 days to cover at the current volume. they've beaten earnings six quarters in a row, and they have a share repurchase program going on. i like this stock between now and the end of the year. also, scholastic, they make children's books. it takes 18 days to recover. >> everyone the third one?
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>> nile, there's an amazing number of shares. there's 100% of the shares in the flow sold short. this company is up over 100% on the year. they manage to grow earnings in a horrible environment. i think there's a long way to go twin n between now and the end of the year. >> do you think there are those people who are considering doing what you're suggesting and covering their shorts -- >> these people are upset. they have to look at the that much law. everyone else is having a party, except these guys are going short to cover. >> what i'm looking at with christmas coming up, we're doing better than expected. as next week rolls around, we'll see some things -- gamestop has 682 retail locations. price of sales is .4 and they've
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grown their soar s sales year over year by 11%. they're a little high at 8.7. i think they can handle that and will do very well going-forward. >> mattel? >> i think more parents will buy their kids, it may keep the kids happy. you have a 12.9 year. 2009. the earnings per share has risen the last 90 days. mattel pays a 3.8% dividend. strong company. >> and your last pick was walmart? >> everyone's out there looking for deals for christmas. i think the stock is a deal as well. three of the last four times, a surprise on the upside, daily earnings on february 18th, maybe another time, and this stock is not expensive, it trades at 13.5 earnings. only using 30% of their payout.
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we could see dividends increase in 2010. this company has a dividend of 20.3%. we could see a boost. >> does walmart move? does the stock move in an accelerated way on the news you are anticipating, generally? >> i think it will. >> any company they lag and lag. look at walmart, i think they will move on good news. you mean for christmas coming out? they can move, yes. >> thank you, both. six days left to trade. up next on the program, a final market check, but first your trend of the day. the cnbc trend tracker live data board is brought to you by cme group. boss: ah! thank goodness you're back.
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gecko: what's going on, sir? boss: we're slammed. tons of people interested in all the money they could be saving by switching to geico..


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